(Photo : Amazon)

• Amazon plans to increase exports from India-based sellers to $5 billion this year, up from $3 billion in 2023.
• This is part of the Amazon Global Selling programme, which has enabled nearly 150,000 small exporters across India to sell their products directly to overseas consumers.
• Amazon's move underscores India's growing role in the global supply chain and reflects a broader trend among multinational corporations to diversify supplies away from China.
• Despite facing criticism, Amazon remains committed to its investment in India, with plans to increase its investments to $26 billion by 2030.

Amazon Inc., one of the world's leading e-commerce companies, is set to significantly increase exports from India-based sellers. The company expects to help Indian exporters sell about $5 billion worth of small-ticket items through its platform this year in markets such as the United States and Britain. This marks a substantial increase from nearly $3 billion in 2023. The projection was shared by Bhupen Wakankar, director of global trade at Amazon India, in an interview with Reuters.

The increase in exports is expected to come from small-ticket items sold through Amazon's platform to markets such as the United States and Britain. This is part of the Amazon Global Selling programme, which was launched in 2015. Since its inception, the program has enabled nearly 150,000 small exporters across India to sell their products directly to overseas consumers using Amazon's e-commerce platform.

Amazon's investment in tools and technologies is aimed at helping sellers optimize their reach, enhance product discovery, and increase sales. We are investing significantly in tools and technologies to help sellers optimize their reach, enhance product discovery, and increase sales, Wakankar stated.

Amazon's Impact on India's Global Supply Chain

Amazon's move underscores India's growing role in the global supply chain and reflects a broader trend among multinational corporations to diversify supplies away from China. This trend is also evident in Walmart Inc' s announcement in 2020 that it planned to increase its supplies from India to $10 billion a year by 2027, up from about $3 billion at that time.

Amazon's partnership with India's commerce ministry and trade associations aims to connect with small manufacturers across the country offering products from textiles and jewellery to household items and Ayurveda products. These items are usually easy to post directly to customers abroad and are less affected by import taxes than costlier products.

However, Amazon's growth in India has not been without criticism. The company, along with Walmart's Flipkart, has faced accusations from trading and political groups of predatory pricing practices. India's commerce minister has expressed concern that the rapid rise of e-commerce should not disrupt the millions of brick-and-mortar stores operating in the country.

Amazon's Future Plans and E-commerce Growth in India

Despite these challenges, Amazon remains committed to its investment in India. In June last year, the company announced plans to increase its investments in India to $26 billion by 2030, including funds for its cloud business. Furthermore, the company aims to facilitate $20 billion in cumulative e-commerce exports from India by 2025.

Amazon's growth in India is part of a larger trend of e-commerce expansion in the country. The total seller base on Amazon's platform under its global skilling programme grew by around 20 per cent over the past year. Over the last nine years, the programme has enabled 150,000 exporters from more than 200 Indian cities to be part of its global selling programme.

The growth of e-commerce in India is also being driven by technological advancements. Retailers are leveraging technology innovations to enhance efficiency while remaining steadfast in their commitment to customer centricity. Technologies such as Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), Blockchain, and the Internet of Things (IoT) are revolutionizing both physical and virtual operations and reshaping customer relations.

In conclusion, Amazon's projected increase in exports from India-based sellers underscores the growing importance of India in the global supply chain. It also highlights the potential of e-commerce and technological advancements in driving economic growth and diversifying supplies away from traditional markets. As Amazon continues to invest in tools and technologies to support Indian sellers, the future of e-commerce in India looks promising. The company's commitment to its investment in India, coupled with its ambitious plans for the future, signals a bright future for e-commerce in the country.